C3.ai (NYSE:AI) Issues Quarterly Earnings Results

C3.ai (NYSE:AI) issued its quarterly earnings results on Wednesday. The company reported ($0.20) earnings per share for the quarter, topping the consensus estimate of ($0.26) by $0.06, FiscalAI reports. C3.ai had a negative net margin of 187.95% and a negative return on equity of 62.44%. The business had revenue of $52.38 million for the quarter, compared to analysts’ expectations of $52.06 million.

C3.ai Trading Up 1.6%

Shares of AI traded up $0.17 during trading hours on Wednesday, reaching $10.51. 8,200,139 shares of the stock traded hands, compared to its average volume of 6,059,272. The company’s 50-day moving average price is $9.45 and its two-hundred day moving average price is $9.43. The company has a market cap of $1.63 billion, a P/E ratio of -3.15 and a beta of 2.10. C3.ai has a 52-week low of $7.68 and a 52-week high of $20.22.

Key Headlines Impacting C3.ai

Here are the key news stories impacting C3.ai this week:

• Positive Sentiment: C3.ai reported a quarterly loss of $0.20 per share, narrower than the $0.26 loss analysts expected. Revenue also slightly exceeded forecasts at $52.38 million versus consensus of $52.06 million. C3.ai quarterly earnings press release
• Positive Sentiment: Management’s leadership transition and the beginning of the “Siebel era” could provide an opportunity to improve sales execution, an area where at least one recent analyst preview saw potential upside.
• Neutral Sentiment: The earnings report showed substantial ongoing losses, including a negative net margin of 187.95% and negative return on equity of 62.44%. Investors therefore remain focused on whether revenue growth can eventually translate into sustainable profitability.
• Negative Sentiment: Second-quarter fiscal 2027 revenue guidance of $51 million to $55 million is below the $56.6 million analyst consensus, signaling near-term pressure on enterprise AI demand or sales execution.
• Negative Sentiment: Full-year fiscal 2027 revenue guidance of $210 million to $240 million brackets consensus at $223.8 million but offers limited evidence of acceleration and leaves room for a material shortfall.
• Negative Sentiment: DA Davidson reaffirmed an “underperform” rating and assigned a $7 price target, substantially below the recent $10.51 share price. The valuation call adds pressure after C3.ai shares have already fallen sharply over the past year.
• Negative Sentiment: Broader risk-off trading tied to Middle East tensions and rising global bond yields has also weighed on speculative technology stocks, including C3.ai.

Analyst Ratings Changes

A number of brokerages recently commented on AI. Citizens Jmp reaffirmed a “market perform” rating on shares of C3.ai in a report on Thursday, June 4th. Morgan Stanley upped their price target on C3.ai from $6.00 to $7.00 and gave the stock an “underweight” rating in a research report on Thursday, June 4th. DA Davidson reaffirmed an “underperform” rating and issued a $7.00 price objective on shares of C3.ai in a research note on Tuesday. KeyCorp reaffirmed an “underweight” rating on shares of C3.ai in a research report on Thursday, June 4th. Finally, Weiss Ratings upgraded C3.ai from a “sell (e+)” rating to a “sell (d-)” rating in a research note on Tuesday, August 4th. One investment analyst has rated the stock with a Buy rating, three have given a Hold rating and seven have given a Sell rating to the company. Based on data from MarketBeat, C3.ai currently has a consensus rating of “Strong Sell” and an average price target of $10.09.

Insider Activity at C3.ai

In other news, CFO Hitesh Lath sold 48,619 shares of the firm’s stock in a transaction dated Tuesday, June 30th. The stock was sold at an average price of $8.77, for a total transaction of $426,388.63. Following the completion of the transaction, the chief financial officer owned 383,106 shares in the company, valued at $3,359,839.62. This trade represents a 11.26% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which is available at the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, CEO Thomas M. Siebel sold 472,005 shares of C3.ai stock in a transaction dated Monday, June 15th. The stock was sold at an average price of $11.11, for a total value of $5,243,975.55. Following the completion of the sale, the chief executive officer directly owned 722,362 shares in the company, valued at $8,025,441.82. This trade represents a 39.52% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Over the last ninety days, insiders sold 1,241,760 shares of company stock valued at $13,084,895. Corporate insiders own 26.50% of the company’s stock.

Institutional Investors Weigh In On C3.ai

A number of hedge funds have recently bought and sold shares of the business. Larson Financial Group LLC increased its stake in C3.ai by 683.6% during the third quarter. Larson Financial Group LLC now owns 1,481 shares of the company’s stock worth $26,000 after acquiring an additional 1,292 shares during the last quarter. Parallel Advisors LLC lifted its stake in shares of C3.ai by 76.4% in the 3rd quarter. Parallel Advisors LLC now owns 1,849 shares of the company’s stock valued at $32,000 after purchasing an additional 801 shares during the last quarter. NewEdge Advisors LLC boosted its holdings in shares of C3.ai by 48.7% in the 1st quarter. NewEdge Advisors LLC now owns 2,442 shares of the company’s stock worth $51,000 after purchasing an additional 800 shares during the period. Summit Securities Group LLC purchased a new position in shares of C3.ai in the 4th quarter worth approximately $40,000. Finally, Federation des caisses Desjardins du Quebec increased its position in shares of C3.ai by 109.3% during the 4th quarter. Federation des caisses Desjardins du Quebec now owns 4,476 shares of the company’s stock valued at $60,000 after purchasing an additional 2,337 shares during the last quarter. Hedge funds and other institutional investors own 38.96% of the company’s stock.

About C3.ai

C3.ai, Inc is a leading enterprise software provider focused on delivering scalable artificial intelligence (AI) and Internet of Things (IoT) solutions to large organizations. The company’s core offering, the C3 AI Suite, is a comprehensive, model-driven platform that unifies data ingestion, model development, and application deployment. Through its suite of tools, C3.ai enables customers to accelerate digital transformation initiatives by applying advanced machine learning, predictive analytics, and AI-driven insights across a broad range of business functions.

The C3 AI Suite provides a low-code environment for data scientists and application developers to rapidly design, test, and deploy enterprise-scale AI applications.